Walmart joins the "trillion-dollar club" as technological transformation reshapes retail valuation logic

On Tuesday (February 3), during U.S. stock trading hours, American retail giant Walmart’s stock price moved against the trend and rose, with the company’s market capitalization reaching a historic $1 trillion, making it a member of the “Trillion Dollar Club” dominated by tech companies.

Market data shows that Walmart’s stock once rose approximately 2.4% during trading, reaching a high of $127.04, and has gained over 14% year-to-date, significantly outperforming the S&P 500 index, which has increased less than 1.3% over the same period.

This retail giant has long been favored by cost-conscious consumers. With its large-scale advantages and strong supplier network, Walmart is able to lower prices and continue to capture market share across different income levels.

While maintaining its appeal to value-seeking households, its online business has also attracted more high-income consumers seeking convenience.

Eric Clark, Chief Investment Officer of Accuvest Global Advisors, said, “Over the past few years, Walmart has undergone a large-scale digital transformation. They have shifted from a traditional brick-and-mortar retailer to leveraging technology to enhance customer engagement.”

Analysts believe that Walmart’s recent investments in artificial intelligence have further accelerated its stock price increase. The company is promoting AI integration across various business operations and has already used this technology to improve scheduling, supply chain management, and other operational efficiencies.

Earlier this year, the company announced a partnership with Alphabet to provide AI-enhanced shopping experiences on the Google Gemini platform; more recently, it teamed up with OpenAI to allow consumers to browse and purchase Walmart products directly through ChatGPT.

Last month, Walmart was included in the Nasdaq 100 Index, highlighting external recognition of its tech strategy. Currently, analysts remain optimistic about Walmart, with data showing the stock has received 47 “Buy” ratings, 3 “Hold,” and only 1 “Sell.”

Today, it is also one of the few non-tech companies with a market value exceeding $1 trillion, previously only held by Berkshire Hathaway, Saudi Aramco, and others. In the S&P 500 Consumer Staples Index, Walmart ranks first by market cap, followed by Costco, Procter & Gamble, and Coca-Cola.

Walmart’s official website now sells a variety of products, from collectible cards to second-hand Chanel bags, and continues to shorten online delivery times. Advertising and other non-retail businesses are also driving profit growth.

The new CEO, John Furner, took over on February 1. His task is to sustain this growth momentum and further advance AI applications.

However, the company still faces increasing competitive pressure: Amazon, Aldi, and others continue to strengthen their low-price strategies, while Target is trying to reverse a year-long slump with more fashionable products and better store experiences.

The strong stock performance has also raised concerns among some investors about whether the upside is limited: Walmart’s average target price for the next 12 months is $124.37, close to Monday’s closing price. The stock’s forward P/E ratio exceeds 42, near historical highs.

In November last year, Walmart raised its full-year sales and profit guidance after exceeding expectations in the third quarter, which somewhat alleviated concerns. The company will release its Q4 earnings report on February 19.

J.P. Morgan analyst Corey Tarlowe said that the conservative performance guidance actually leaves room for continued outperformance in the future.

“Overall, we believe Walmart will continue to compete for market share through price investments into 2026, and the company’s outlook may still be somewhat conservative.”